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ACCC approves Fremantle port productivity bias


The Australian Competition and Consumer Commission has granted interim authorisation to DP World Australia and Patrick to develop a system to provide preferential treatment to truck carriers engaged in 'dual runs' at the Port of Fremantle.
 
A dual run is where a truck both delivers an export container and collects an import container during the same trip. In most Australian ports not much more than 10% of trucks do dual runs, a statistic seen as a significant factor in hindering port productivity improvements.
 
DP World Australia and Patrick each operate a container terminal at the Port of Fremantle.
 
At this stage, DP World Australia and Patrick are developing a Vehicle Booking System that will enable them to implement the proposed preferential access arrangements. Interim authorisation allows the development of the VBS to continue. The development of the VBS is unlikely to be completed before the ACCC issues its final determination.
 
The ACCC accepts that the possibility of another container terminal operator commencing operations at the Port of Fremantle during the term of the interim authorisation is unlikely. However, the issue of access to the VBS by new entrant container terminal operators will be an important consideration during the ACCC's assessment of the substantive applications for authorisation.
 
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application.

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